Various payment methods can be used when purchasing goods and services. However, it is possible for a criminal to fraudulently use a payment method, and particularly a credit card that belongs to some other person. There have been efforts to ameliorate harm from fraud.
For example, a credit card issuer could call a cardholder after a credit card transaction is made in order to confirm that the cardholder was the one who was responsible for the transaction. If the cardholder denies making the credit card transaction, it may be the case that the transaction was fraudulent. After receipt of cardholder-confirmed fraudulent activity, the issuer can cancel the card, issue a new card, send the relevant information to a recovery department, etc. The issuer may or may not also process an affidavit and check for a refund. Finally, the issuer may or may not process a chargeback. The entire process can take weeks. Frequently, a merchant is contacted too late to do anything about the fraudulent transaction.
Problems with this approach include the timeframe, the lack of collaboration with merchants, and the lack of collaboration with other stakeholders in the transaction. A system that increases fraud detection and communication speed and/or improves collaboration between relevant parties would be desirable.